New mortgage rules benefit students - but prices rise

Friday's admission notice means that hundreds of thousands of people will now be moving and looking for accommodation at the new study location. According to Hemnet's market analyst Erik Holmberg, the new regulations for mortgages have made it possible for more people than before to now consider buying a home instead of renting during their studies.

- The supply on the buying market has increased, which improves the conditions for buyers. Changed credit restrictions and lower cash investment make it significantly easier for many to buy a home today than it was a few years ago, he says, but admits that it is still challenging for young people to enter the housing market.

In the spring, new mortgage rules were introduced with the aim of making the housing market more accessible to young people. The stricter amortization requirement was removed, while the cash contribution was lowered from 15 percent to 10 percent.

In connection with the rule changes being presented, there were voices that warned that housing prices could increase as a result, which has also happened.

DN then spoke to several experts who warned of price increases, while the Norwegian Economic Institute flagged that the rules could lead to increased indebtedness among young people.

- If you look at, for example, a number one, you should bear in mind that there may be more speculators on it. There are warnings that this could cause housing prices to rise, which would discourage or make it still difficult to enter the market, Nordnet's savings economist Frida Bratt said at the time.

A few months after the new regulations came into force, there have been price increases in many places in Sweden. And the expectation is that prices will continue to rise, which in turn can be positive for some.

- The price is expected to continue to rise gradually, which can make an apartment purchase this year a rather smart financial deal compared to recent years. At least if you stay there longer than just two to three years, because buying a home always involves a certain risk, says Holmberg.

Small homes in Stockholm are by far the most expensive in the country. But there, too, the price is lower than in the peak year of 2022. Holmberg notes at the same time that it is often popular among students in Stockholm to live a little outside the city center because widespread public transport allows longer distances to the university.

He takes Sundsvall as an example of a medium-sized student city with lower price levels, which means that more students can see a home purchase there as a realistic possibility.

- Relatively speaking, the housing there is quite cheap. The price varies somewhat, but you can get down to SEK 500,000–600,000 for a one-room apartment. Then we approach levels that even students without very long work experience can afford without too much support from parents and relatives.